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Non-Tech : PEP -- Time to buy?
PEP 143.93-1.5%9:30 AM EST

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To: RFK who wrote (271)9/11/1997 8:58:00 PM
From: Larry Novenstern   of 392
 
Where did you read this information? While PEP is two-thirds of the company, it will also have ten times as many shares outstanding. So from that perspective, YUM should be trading at a higher multiple than PEP.

If PEP has 90 million shares and YUM only 9 million the P/E ratio could dictate (potentially) a $40 share price for YUM.

Just my thoughts though. In the end the market will reflect the fair price of both companies. If anyone else can explain this I would appreciate the education.
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